Which one of the following statements concerning a sole proprietorship is correct?

Which one of the following statements concerning a sole proprietorship is correct?    A.  The life of a sole proprietorship is potentially unlimited. B.  A sole proprietor can generally raise large sums of capital quite easily. C.  Transferring ownership of a sole proprietorship is easier than transferring ownership of a corporation. D.  A sole proprietorship is taxed the same as a C corporation. E.  It is easy to create a sole proprietorship. Refer to section 1.2

22.	Which of the following individuals have unlimited liability based on their ownership interest? I. general partner II. sole proprietor III. stockholder IV. limited partner    A.  II only B.  I and II only C.  II and IV only D.  I, II, and III only E.  I, II, and IV only Refer to section 1.2

23.

Which one of the following best describes the primary advantage of being a limited partner instead of a general partner?    A.  tax-free income B.  active participation in the firm's activities C.  no potential financial loss D.  greater control over the business affairs of the partnership E.  maximum loss limited to the capital invested Refer to section 1.2

24.

A general partner:    A.  is personally responsible for all the partnership debts. B.  has no say over a firm's daily operations. C.  faces double taxation whereas a limited partner does not. D.  has a maximum loss equal to his or her equity investment. E.  receives a salary in lieu of a portion of the profits. Refer to section 1.2

25.	A limited partnership:    A.  has an unlimited life. B.  can opt to be taxed as a corporation. C.  terminates at the death of any limited partner. D.  has a greater ability to raise capital than a sole proprietorship. E.  consists solely of limited partners. Refer to section 1.2

A business formed by two or more individuals who each have unlimited liability for all of the firm's business debts is called a:

1.	Which one of the following terms is defined as the management of a firm's long-term investments?    A.  working capital management B.  financial allocation C.  agency cost analysis D.  capital budgeting E.  capital structure Refer to section 1.1

2.	Which one of the following terms is defined as the mixture of a firm's debt and equity financing?    A.  working capital management B.  cash management C.  cost analysis D.  capital budgeting E.  capital structure Refer to section 1.1

3.	Which one of the following is defined as a firm's short-term assets and its short-term liabilities?    A.  working capital B.  debt C.  investment capital D.  net capital E.  capital structure Refer to section 1.1

4.	A business owned by a solitary individual who has unlimited liability for its debt is called a:    A.  corporation. B.  sole proprietorship. C.  general partnership. D.  limited partnership. E.  limited liability company. Refer to section 1.2

5.	A business formed by two or more individuals who each have unlimited liability for all of the firm's business debts is called a:    A.  corporation. B.  sole proprietorship. C.  general partnership. D.  limited partnership. E.  limited liability company. Refer to section 1.2